Big Strategic Deals Dominate the Headlines in Q2’19

The Beauty Care M&A market continued its strong momentum with 33 transactions in Q2’19. M&A transaction volume in the Beauty Care sector was up 18% over both Q1’19 and Q2’18. The 33 transactions also marks the most transactions in any given quarter since the launch of Intrepid’s Beauty Care M&A report in Q1’14.

Not only was deal volume at record levels but the quarter witnessed five strategic acquisitions with enterprise values in excess of $500 million. Such activity included deals by two of the most active acquirers in the Beauty Care sector–Unilever and The Hut Group both with three deals over the past 12 months–alongside $1 billion-plus transactions from both Edgewell and Natura.

Click here to view the full industry report.

The private equity (PE) acquirer market was relatively quiet during the quarter with deals announced by Webster Capital, Prelude Growth Partners, Lion Capital, and CITIC Capital. PE groups however were active sellers with successful exits by VMG Partners (Sun Bum), Castanea Partners (Tatcha), and Tengram Capital Partners (This Works).

Q2’19 Beauty Care M&A highlights include:

  • Deal volume was up 18% versus both Q1’19 and Q2’18.
  • Number of Beauty Care M&A transactions set a record, representing the highest deal volume in over five years.
  • Strategic acquirers dominated the quarter with acquisitions by Unilever, The Hut Group, SC Johnson, Edgewell, Beiersdorf, Natura, and LG Household & Health Care.
  • PE groups were more active sellers than buyers in the quarter with notable exits from VMG, Castanea, and Tengram.

Steve Davis
Managing Director
Head of Beauty & Personal Care
sdavis@intrepidib.com